Profitability decline during the Most Recent Quarter is not a concern in the special case of this stock. Any company involved in food processing is susceptible to temporary cost escalations periodically. Business results for this stock have been affected by inclement weather in Chile, but the company has the durability to recover quickly from this temporary set-back.
The company started business by selling fresh and processed avocados. It has steadily built an unbeatable reputation in this niche. It has branched into pineapples and other sub-tropical delicacies from Hawaii. The management has built enduring stock value by entering into US distribution arrangements with tomato producers from Mexico and with mushroom growers from British Columbia. The mushroom business has the most expansion potential because consumption of this highly nutritious and zero-cholesterol food ingredient is one of the fastest growing segments of the US food market.
The management has retained the business model of fresh as well as processed farm produce. This gives the company considerable distribution strength in a highly competitive space. A broad quality umbrella and prudent financial management protect the stock from share losses to competitors. Both canned and raw products are excellently presented with high visual appeals on retail shelves. The company subscribes to state-of-the-art food safety practices.
Average Dividend Yield over the past five years and the Trailing Twelve Months Payout Ratio are better for the company than for the entire Food Processing Industry. The diversification into mushrooms brightens 2008 prospects. Further entries into related segments are likely.
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